McQuillan is located under the ridge line between Mitchell Creek and Sulphurets Creek and below the Sulphurets deposit. This target could be exploited from a decline in either the Mitchell or Sulphurets valleys and current plans have placed drainage tunnels in the vicinity of this target. The potential value of this target is due in part to its proximity to planned infrastructure. Two drill holes are planned for early in the 2013 program to fully evaluate the potential of the McQuillan target.
Iron Cap Target
Iron Cap is nearly contiguous with the Mitchell deposit on the east and the deep potential on this target sits in an attractive position for quick integration into the project development plan. All the past drilling on the Iron Cap deposit has demonstrated that alteration intensity and chalcopyrite concentrations improve with depth. In addition, the progression of alteration suites shows that higher temperature environments exist at depth in Iron Cap. One drill hole was completed on this target in 2012. Hole IC-12-47 encountered mineralization that supports potential for a high-grade core zone at depth; however, the hole deviated severely and the target zone was not intersected.
-------------------------------------------------------------------------------------------------------------------------------------------------------- Total Gold Copper Depth From To Thickness Grade GradeHole ID (meters) (meters) (meters) (meters) (g/T) (%)--------------------------------------------------------------------------------------------------------------------------------------------------------IC-12-47 949.5 3.8 949.5 945.7 0.47 0.25 -------------------------------------------------- -------------------------------------------------- incl. 503.0 602.7 99.7 0.81 0.30 -------------------------------------------------- -------------------------------------------------- incl. 679.0 757.0 78.0 0.31 0.47--------------------------------------------------------------------------------------------------------------------------------------------------------
The proximity to both planned infrastructure and the Mitchell block cave deposit makes this target a priority. Additional drilling is planned on the Iron Cap deposit in 2013 to evaluate the potential for a deep zone under the current reserves.
North Mitchell Target
The mineralized and altered intervals beneath the Sulphurets Thrust Fault intersected by holes M-12-128 and M-12-129 (see release of September 5, 2012) are interpreted to have intersected the periphery of a new, blind (or buried) porphyry gold-copper hydrothermal system at KSM. This target is being called North Mitchell and is represented by a deep MT low resistivity anomaly between the Mitchell and Iron Cap deposits. The zone is typified by potassic hornfels in andesite that is pervasively chlorite altered, with pyrite, magnetite, and minor but ubiquitous chalcopyrite. These characteristics suggest that the North Mitchell target is associated with an unknown, very large and robust mineral system.
North Mitchell and its well defined MT anomaly are adjacent to the designed twin Mitchell Access Tunnel which connects the deposits in Mitchell and Sulphurets valleys with the planned Tailings Management Facility. The proximity of this target to designed infrastructure would likely enhance the value of the project. Consequently, this target remains a priority for additional drilling in 2013.
